KURNOOL: The chit fund racket left 800-odd families in utter shock in the city. The chit fund organisers absconded after taking nearly Rs. 4.25 crore from the public. Angry investors demonstrated at the house of the chit fund organisers at Shareen Nagar on Monday night and refused to leave the place until the police registered a case.
According to reports, Devamada Seshaiah and his son Subramanyam started the business 20 years ago in Shareen Nagar and earned the trust of investors. Besides conducting the business in local colonies, the duo spread it to nearby villages also.
Even after repayment of chit amount, the members reinvested the amount with him lured by 36 per cent rate of interest offered by him. Laxmi, a housewife, said she had accumulated Rs. 40,000 over a long period and deposited the amount with him hoping for decent returns. Her husband works as hamali and she as daily wage worker. Many poor families like that of Laxmi were lured by the high interest rates.
The chit fund organisers had been sincere for a long time and earned the trust of the customers.